iRobot

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Transcript of iRobot

iRobot Andy ScaliseJordan KornGriffin PetersonAndie YepezAshley Kohorst Introduction External Environment Internal Environment FinancialAnalysis Analysis of Strategic Factors QuestionsCommentsConcerns Option 2 Customer Acquisition Option 1 Option 3 iRobot Strategic Posture Objectives Strategies Societal Environment Economic Technological Political Legal Sociocultural Task Environment Rivalry Buyer Power Power of Other Stakeholders Distributor Power Entry Barriers Corporate Structure Corporate Resources Marketing Finance R&D Operations Human Resources Strengths Weaknesses Opportunities Threats SFAS RecommendedStrategy Implementation Evaluation and Control IFAS EFAS Alternatives R&D FocusCustomer AcquisitionRetrenchment Pros Cons Most of iRobot's income would come from a single division of the companyPeople may not "buy into" robotic productsGovernment may begin to see iRobot as a consumer product company and devalue its technology Easy product for people to understandGain visibility in the marketPotential for new home cleaning products to be developedIncrease dependency on iRobot products leading to further success in this sectorEfforts would be focused on the primary revenue generator for the company Focus on B2B and B2C marketing for the home cleaning robots by increasing the marketing budget 6-12 monthsSaturate retail storesSaturate national cleaning corporations with home cleaning productsHome and store demonstrationsTV advertisementsOptimize online advertising and websiteGroupon Offer 0-6 MonthsSet up meetings and demonstrations with national cleaning corporationsDevelop retail store entry strategyFurther engage social media (video, photos, conversation)Strengthen PR team Target bloggers, local news, and radio and TV talk showsOnline advertisingDevelop a TV and radio advertising strategy 1-2 YearsHave products in at least 90% of major retail storesDouble social media presenceHave products being used in at least 2 national cleaning company chainsIncrease revenue by 10-15%Customer surveys and employee reflection surveys to evaluate how people perceive our product and how much they like itConduct surveys about what other iRobot products consumers would like to see in the market 2-3 YearsIncrease revenue by another 10%Increase social media presence by another 50% Determine 2 new home cleaning products to enter into the market based on customer surveys Option 2 Customer Acquisition R&D Focus Focus on developing civil law enforcement robots ProsDiversify product linesNew source of incomeFirst mover advantageAlready have some military robots that can just be tailored more specifically to civil law enforcement ConsCivil law enforcement agencies may reject the new robotic technologyIncreased liabilityDifficulty securing agency contracts Retrenchment Divest home cleaning product patents and productsFocus on military and aerospace ProsiRobot could sell off its home cleaning product division and focus on contract related agreementsFocus on one division where they have more experience instead of splitting their resources into two ConsToo many eggs in one basketIf Government contracts do not renew and they eliminate using iRobot the company will be in tremendous financial troubleiRobot will be giving up its only opportunity to become a player in the consumer robot industryExtreme dependency on federal regulations, fiscal policy and expendituresHighly uncertain marketplaceWhen iRobot's patents expire the military may start making their own robots instead of using iRobot Revenue Founded: 1990 in DelawareRodney BrooksColin AngleHelen Greiner Alliances- Boeing- Advanced Scientific ConceptsPatentsTwo Markets- Consumer- Military Create new products and stay ahead of consumer needs Luxury Goods

Recession New technology leaves oldtechnology obsolete Recessions alter how the governmentwill spend its money- Less emphasis on Robotics Military robots spare lives

Healthy Financial Positon iRobot has strong corporate structure, with members from prestigious schools and companies from across the United States.

Founded at MIT, iRobot is a technology developer with a modern corporate structure.

CEO – Colin Angle, MIT Grad and co founder has won a multitude of awards for his work iRobot’s promotion strategies varied between product markets

Home care products required a large percent of the marketing budget

iRobot also participated in education based programs like SPARK and National Robotics week From 2005 – 2009, iRobot’s revenue more than doubled from $142 to 299 million.

88% of revenue came from selling products, whereas the other 12% came from consulting.

In 2009 sales of home robots slipped by 6.3% due to the recession. However this was offset by an increase in international sales.

iRobot was smart enough to reduce costs and operating expenses so that they increased their net income from $756k to $3.3 million. Research and development at iRobot was a critical part of the company’s success. iRobot believes that they can stay ahead of customer needs by bringing new, innovative products to the market.

In 2009, total R&D costs were $45.5 million

$14.7 million of costs were funded internally while the rest were funded externally through government programs.

R&D teams meet at different locations across the US to ensure that the product is tailored to each market they are a part of. Teams use in-field testing to allow iRobot to quickly improve its technology and design so it can successfully fulfill the needs of the end-users.

As of 2009 the company held 71 US patents, 150 patents pending, 34 international patents and more than 108 pending foreign applications. iRobot mainly operates as design firm

From the start of the company until 2010, iRobot used only two third party manufacturers.

In 2010, iRobot signed a long term contract with US based Jabil Circuit Inc., a manufacturer, tester and supplier of robotic components. iRobot employs 538 full time employees who are some of the most distinguished robotics professionals in the world.